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An assessment of the India Economy during the Reforms


It is almost two decades now, after the reforms have been introduced. Let us have a look at our performance after the reforms
 

Sector

1980-91

1992-2001

2002-07(tenth plan projected rate)

Agriculture

Industry

Service

3.6

7.1

6.7

3.3

6.5

8.2

4

9.5

9.1

GDP

5.6

6.4

8

 

From the above table we can see that the GDP of our country has risen. During the reform period, the GDP of the service sector has risen while the GDP of both agriculture and industry had gone down. This means that the service sector had grown during the period. The tenth plan has projected a GDP of 8 with the industrial sector having the maximum growth. Quite a few scholars believe that such projected growth rates are not sustainable.

The reformation of the economy has led to an increase in the foreign investment and the foreign reserves. Foreign investment includes foreign institutional investment and foreign direct investment. This has risen from 100 million $ in 1990-01 to 150 billion $ in 2003-04. The foreign exchange reserves have increased from 6 billion USD in 1990-91 to 125 billion USD in 2003-04. Presently India is the sixth largest foreign exchange holder in the world.

India is looked upon as a successful exporter of auto parts, it software, engineering goods and textiles. Rising prices have been controlled. The reform process has been criticized for not changing the situations and solving the basic problems faced by our economy in the areas of unemployment, agriculture, industry, fiscal management and infrastructural development.




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